The FDI approval process is one of the decisive factors of successful implementation of investments in a country. This paper attempts to identify the relationship and association between several factors that involves in new FDI appraisal process by the host country. It identifies factors such as global presence of the intended investor; the type of Industry; expected contribution from the investment; potential for gaining competence regarding human resource; expected developments in the country’s infrastructure. The study suggests that above factors are critical to the relevant authorities who involved in FDI promotion. This research also ranks these factors to make the conclusions more useful in the real-life application. It also highlights the number of employments generated for local workers under the new investment. The new investments bring additional knowledge, skills, and competence that usually not quantified at the appraisal level. The success rate of similar investment in other countries also to be critically evaluated. The findings of this research could be extremely useful for countries who wish to host FDIs. A clear understanding about the key influencing factors and their association with the investment appraisal process would be the key to optimize the process.
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